Seth Klarman's Baupost Group: Market Rally Could End with Tears

Baupost Group LLC is a $24 billion hedge fund run by famous value investor Seth Klarman. The hedge fund which likes to maintain tight secrecy, has come in the public eye over a lawsuit filed against Bank of America, and for their investment in a Mega-quarry in Ontario.

Sources familiar with the matter reported that the hedge fund was up for the first quarter of 2012, although it lagged the market.

Klarman does not think the recent market rally based on the Federal Reserve's zero interest rate policies, and action by the European Central Bank to inject 1...